With new sellers flooding the market and asking prices rising sharply, the UK housing market has seen a noticeable uptick in activity as 2025 gets underway. The industry exhibits resilience and optimism in face of persistent uncertainty around interest rates and tax reforms.<\/p>\n\n\n\n
This spike in activity occurs as both buyers and sellers feel more confident due to declining inflation and stable borrowing rates. However, there are still issues, and the market’s future course is probably going to be impacted by affordability limitations and impending stamp duty changes.<\/p>\n\n\n\n
While the market appears strong, potential headwinds could affect momentum. Mortgage <\/a>rates, though slightly improved, remain relatively high. The average five-year fixed-rate mortgage stands at 4.75%<\/strong>, while two-year fixed rates hover at 4.97%<\/strong>. Such levels continue to challenge buyers, particularly those seeking affordability.<\/p>\n\n\n\n
Adding to this, changes to stamp duty effective from 1 April are expected to impact purchasing dynamics. While first-time buyers of properties under \u00a3300,000 <\/strong>will largely remain unaffected, increased tax <\/a>burdens on more expensive homes<\/strong> could deter activity in higher-value areas. Industry analysts have called for additional support for first-time buyers to offset these potential challenges.<\/p>\n\n\n\n